MARKETING INNOVATION CASE STUDY

Name: Randa Purnama Amin
NIM: 1340002316

Question for Dell: 1. Explain why Dell is loosing its competitive edge. Dell is slowly losing its competitive edge because of its highly innovated competitors and because competitors such as Apple are able to capture the consumer’s attention by offering differentiated and innovated products in the market.

2. In your opinion, what should Dell do to keep its position? Explain.

3. Create a TOWS analysis

• Strength - Good Customer Services - Good Customer Relationship - Direct Model Approach

• Weakness - Limitation of direct selling approach - Lack of innovation - Absence of retail stores - Internal control

• Opportunity - Enter new geographic locations where consumers are price sensitive. - Concentrate on winning the college students. - Build a competitive advantage by strengthening itself with the enterprise users.

• Threat - Competitors are intense especially because Dell’s competitors are more innovative their products are more differentiated. - The price is very similar to Dell’s offerings. - The competitors can easily copy Dell’s strategy if they decide to.

To summarize the strengths of Dell, there are basically three strong points and that is their customer service, customer relationship and their direct model approach. However Dell has generally four weaknesses and those are, limitation of their direct-selling approach, lack of innovation, absence of retail stores and their weak internal control. We have seen that their direct model approach is both strength and a weakness of Dell and so it’s not really a strong strategy that can give them a competitive advantage. Dell’s customer